SR Telecom eyes local market for WiMax

March 16, 2006

Canadian broadband fixed wireless solutions provider SR Telecom believes Mexico will be one of the top 10 countries in the world for WiMax sales in 2006, SR Telecom's marketing vice president Chad Pralle told BNamericas.

Mexico's transport and communications secretary SCT is due to publish a draft bill very soon for opening up the 3,400-3,700MHz band for WiMax, meaning operators can install networks without the need for a concession license.

According to Pralle, Mexico is in a category of developing countries with reasonable PC penetration and GDP per capita but still with low DSL broadband penetration, and such countries may leapfrog wired broadband, going straight to wireless.

"There's a lot of talk about WiMax and what it can do. People talk about putting it into New York City and providing mobile broadband access. But in the short term it is countries like Mexico that are going to be the driver for WiMax volume because there's pretty good PC penetration, good GDP per capita and a real drive to get broadband," Pralle said.

At the beginning of this month, SR Telecom announced it had won a US$10M contract to deploy equipment for Mexican fixed line operator Axtel, which Pralle says was the most significant WiMax contract won anywhere in the world in 2005.

Pralle expects a shift this year with carriers starting to offer WiMax broadband solutions to residential customers rather than just corporate and small office home office (SOHO) clients.